The WLAN market is estimated to grow 40 percent to about $13 billion in 2019, according to market research firm Dell’Oro Group.

A visitor takes a photo with a tablet in front of a Hewlett-Packard (HP) stand at the Mobile World Congress in Barcelona, February 27, 2014. REUTERS/Albert Gea

HP, which has struggled to adapt to mobile and online computing, plans to separate its computer and printer businesses from its corporate hardware and services operations this year.

Aruba sells Wi-Fi gear to a wide range of clients including California State University and Dalian Wanda Group, which controls China’s biggest property developer and largest cinema chain.

The purchase will also help HP better compete for E-Rate - the largest U.S. educational technology subsidy program - which helps connect schools and public libraries to high-speed Internet, JMP Securities analyst Erik Suppiger said.

In December, the Federal Communications Commission voted to raise funding for the E-Rate program by $1.5 billion to $3.9 billion.

The all-cash offer of $24.67 per share is a premium of 34.4 percent to Aruba’s close on Feb. 24, the day before Bloomberg reported about a possible deal.

Aruba shares fell 1.6 percent to $24.41 in afternoon trading on Monday. The stock had risen about 40 percent since the Bloomberg report. HP shares were down marginally at $34.76.

HP’s cash pile stood at $12.9 billion at the end of January.

Evercore Partners and Catalyst Partners served as financial advisers to Aruba.

Additional reporting by Anya George Tharakan and Sai Sachin R in Bengaluru; Editing by Sriraj Kalluvila